TELECOM INDUSTRY
BRIDGING DIGITAL DIVIDES
Nirmali Ameresekere reports on Starlink’s potential for socioeconomic growth
In 2024, the Parliament of Sri Lanka amended its telecommunications law for the first time in 28 years, creating new licence categories that allow satellite internet providers to operate. This landmark policy shift enabled the Telecommunications Regulatory Commission of Sri Lanka (TRCSL) to licence Starlink, the satellite internet service developed by SpaceX.
Its commercial launch in July marked a pivotal moment in the country’s digital journey, raising questions about how satellite connectivity can contribute to Sri Lanka’s ambition of build a US$ 15 billion digital economy by 2030.
Reliable and affordable internet is a proven driver of economic development, particularly in emerging markets. Numerous studies demonstrate a positive correlation between broadband penetration and GDP growth.
Although small in regional market size, Sri Lanka has been a frontrunner in adopting new technology and achieving relatively high network penetration. It was the first in South Asia to commercialise internet services in 1995, an early adopter of 3G connectivity in 2004 and among the pioneers in trialling 5G technology. The arrival of Starlink adds to this record of innovation.
For Sri Lanka – a nation with relatively high network penetration but unequal access in certain regions – Starlink offers a potential tool to bridge connectivity gaps. The technology uses a constellation of low earth orbit (LEO) satellites positioned about 550 kilometres above the Earth’s surface, enabling high-speed internet with lower latency than traditional satellite systems.
This design makes it especially suitable for rural and underserved regions – such as the hill country, coastal belts and the Northern Province – where fibre optic cables and robust mobile broadband reach are limited.
The potential socioeconomic benefits are considerable: greater connectivity could empower small businesses and entrepreneurs in remote areas to expand into e-commerce, improve access to customers and reach international markets.
Education could benefit too – i.e. through remote learning platforms, enabling students in rural schools to access the same resources as their urban counterparts. In healthcare, telemedicine could help reduce inequalities by linking isolated communities with specialists based in Colombo and other urban centres.
In addition, local IT service providers may find opportunities in installing and maintaining satellite systems, thereby retaining economic value within the country.
Despite these opportunities however, challenges remain.
Starlink equipment and subscription costs are considerably higher than traditional mobile broadband packages, making it inaccessible to many low income households and small businesses.
Furthermore, as a foreign internet provider, Starlink raises concerns about data sovereignty, cybersecurity and regulatory oversight. Existing domestic internet service providers may also view Starlink as a competitor.
To maximise its impact, Starlink should be integrated into a broader national broadband strategy, complementing rather than replacing fibre optic and mobile broadband networks. Investments in terrestrial infrastructure, combined with public-private partnerships (PPP) with local ISPs, can help extend affordable access to underserved communities.
Equally important are digital literacy programmes.
In 2023, 63.5 percent of Sri Lankans were considered digitally literate by the Department of Census and Statistics – they are defined as being able to use a laptop, tablet or smartphone independently. However, this broad definition could encompass basic use such as sending messages or accessing social media.
In comparison, UNESCO’S definition is more apt. It defines digital literacy as the ability to access, manage, understand, integrate, communicate, evaluate, and create information safely and appropriately through digital technologies, for employment, decent jobs and entrepreneurship.
With this definition in mind, pairing Starlink deployment with targeted skills training would enable the government and policymakers to ensure that satellite internet becomes a catalyst for inclusive growth and social progress in Sri Lanka.
